Tesla Now Connects Every Car To Internet Through AT&amp;T Wireless, But It's Not 4G LTE

In the battle between wireless giants to provide mobile internet to the major automakers,
AT&T has declared that it's working in every model of perhaps the highest-flying of them all: Elon Musk's electric automaker Tesla. The partnership, which the company unveiled in San Francisco Thurs., is across all of Tesla's models and integration has quietly already happened.

Tesla drivers with makes that include a modem and distinct embedded SIM card can connect through AT&T for real-time data via radio signal, safety diagnostics and other stats on driver habits and usage. Every Tesla with an infotainment screen offering applications like weather and Internet browsing is also running on AT&T, Chris Penrose, senior vice president of emerging devices, told the crowd at GigaOm Mobilize.

Users may already be aware that Musks' firm can track their driving habits and usage due to a high-profile spat the serial entrepreneur had with a New York Times reviewer in Feb., when Musk said an unfairly poor review of Tesla's Model S sedan cost the company up to $100 million. In that situation, Musk released data logs on his blog of the reviewer's driving in an attempt to discredit the Times report.

It seems now that such data is being collected through AT&T machine-to-machine (M2M) solution, which provides direct connectivity over 3G and 4G connections, but not 4G LTE, the high-speed connection capability currently popular for new wireless devices like phones.

The fact that AT&T is only now disclosing it's in every car suggests that the company feels confident enough in its partnership with Tesla to claim the company publicly as one of its latest partner coups. The company has invested in a new M2M-focused center called The Foundry in Atlanta for its suite of M2M solutions, which are increasingly strategic to the company's growth.

AT&T had earlier scored major coups by taking
General Motors' OnStar system away from rival Verizon; its also recently partnered with Sirius XM to provide connections for Nissan's North American models. Verizon remains a player in the space following its $600 million purchase of Hughes Telematics last year, while Sprint announced a partnership this summer with
IBM that's taken aim at Chrysler and Ford, a separate IBM partner.

Connecting cars are increasingly the norm for automakers, and the major wireless providers are racing to take on contracts globally. Analysts have told FORBES that contracts for the major U.S. automakers are more difficult and thus greater prizes to claim, as much of the uncharted opportunity is with automakers in the Asian market.

Terms of the Tesla-AT&T partnership were not disclosed. While analysts note that while such partnerships are increasingly getting deeper, including dealership devices and other integrations to win on price, that's not the case with this deal. An AT&T spokesperson tells FORBES that the partnership is "a simple deal" only to provide the connectivity.

AT&T noted that nothing really changes for drivers after the announcement, as integration was done beforehand without any AT&T brand presence. But as Tesla grows its own profile, associating with Musk and the company is another major victory for AT&T in the M2M battlefield. Drivers who aren't fans of AT&T's wireless options are left to change their minds about the company or connect at their own risk.

Have you tried Tesla' infotainment or other wireless features? Let me know how well they work in the comments below or reach me on Twitter: Follow @alexrkonrad